FCA aims to be more adaptive with fintech regulation
The City regulator has vowed to be more adaptive to ensure that fintech regulation supports the sector.
Speaking at the Innovation Finance Global Summit 2022, Jessica Rusu, chief data, information and intelligence officer at the Financial Conduct Authority (FCA), said that the watchdog has launched a unified firm support service called Innovation Pathways.
She said these will provide bespoke regulatory support to firms with innovative business models that want to deliver positive innovations and consumer outcomes in the market.
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Rusu said the pathways will “combine and enhance” its direct support and advice unit services, which support both authorised and non-authorised firms.
She said a high proportion of firms that have used these services (98 per cent) and the FCA’s regulatory sandbox (92 per cent) have successfully become authorised.
Rusu said the regulator’s innovation pathways will play a “key role” in informing and ensuring its regulatory environment is fit for future innovation.
She said the FCA aims to be more innovative, led by data and technology, and “more adaptive” to ensure that regulation supports the fintech community.
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“As a regulator we must foster innovation, be intelligence led and prepare for the future,” Rusu said.
“Our new unified firm support service ‘innovation pathways’ will play a key role in informing and ensuring our regulatory environment is fit for future innovation.
“The FCA vision is to be even more innovative, led by data and technology. Ever more assertive to ensure consumer protection and market integrity.
“And ever more adaptive to ensure that regulation supports the fintech community.”
Rusu added that the FCA is reviewing the findings of pilot schemes, ‘early oversight’ and ‘high growth oversight’ initiatives, introduced in response to recommendations in the Kalifa Review to extend supervision support to firms that are scaling quickly or are new to regulation.
She added the regulator will be announcing its next steps on this soon.
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